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Kapil   13 July 2021

Covid: will bank file emi bounce cases us 138 ni act?

As per this Business Times newspaper on NACH data,  

In April, of the 85.4-million auto-debit transactions initiated, 56.3 million were successful, while 29.08 million failed, which make up for 34.05 per cent of the total transactions.

Therefore, my question: Is Judiciary ready to handle such a huge amount of cases and the primary question is, will the banks file such a large number of cases during coronavirus? Are prisons ready to take in such convicts?



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 2 Replies

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     13 July 2021

There is no need for every cheque bounce or auto debit failure  doesn't automatically  result in a case under Section 138. Banks have robust decision making machinery and they take decisions on case to case basis.

 

G.L.N. Prasad (Retired employee.)     13 July 2021

The Supreme court has directed Govt to  implement certain suggestions and the similar cheque bounces for 12 months can be clubbed as one case, and the Court can commence direct trial, consider the documentary evidence and summoning etc were exempted.  Both SC and Govt are aware of the burden, we can expect such implementation of some suggestions by SC.


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